Bond pricing & yield worksheet with answers

Free printable Bond pricing & yield worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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1.Easy

A bond with a face value of €1 000 pays an annual coupon of 3% and trades at €1 110. Find its current yield CY in percent.

F = €1 000coupon = 3%P = €1 110

CY = %

2.Easy

A zero-coupon bond with a face value of €1 000 matures in 3 years and costs €910 today. Find its yield to maturity YTM in percent.

F = €1 000n = 3P = €910

YTM = %

3.Medium

A bond with a face value of €1 000 pays an annual coupon of 3% and matures in 6 years. Its yield to maturity changes from 8% to 9.5%. By how much ΔP does the bond price change?

F = €1 000coupon = 3%n = 6y₁ = 8%y₂ = 9.5%

ΔP = €

4.Medium

A bond with a face value of €1 000 pays a 4.5% annual coupon in two half-yearly payments and matures in 7 years. The yield to maturity is 4% per year. Find the price P of the bond.

F = €1 000coupon = 4.5%YTM = 4%n = 7

P = €

5.Hard

A bond trades at €955 with a yield to maturity of 6% (annual compounding) and a Macaulay duration of 4.5 years. Use the modified duration to estimate the new price P if the yield rises by 50 basis points.

P₀ = €955y = 6%D = 4.5Δy = +50 bp

P = €

6.Hard

A bond with a face value of €1 000 and an annual coupon of 4% matures in 3 years and sells for €1 045. Find its yield to maturity YTM in percent.

F = €1 000coupon = 4%n = 3P = €1 045

YTM = %

Answer key

1. CY = 2.703 %
2. YTM = 3.194 %
3. ΔP = −56.14 €
4. P = 1030 €
5. P = 934.7 €
6. YTM = 2.427 %

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